As Evergrande faces delisting, China property debt revamp drags on

Once upon a time, China’s best developer, Evergrande Hong Kong Delisting

Delist will come after 18 months of trade suspended

The ownership crisis continues to heavy on China’s economy.

Developers are delayed because debt renewal negotiations are not delayed

Newly assumed and more reconstruction tours are expected – consultants

Hong Kong, – China Evergrande Group seems ready to be expelled from the Hong Kong Exchange next month after not renewing its debt and pushed to the liquidation, and the stubborn weak Chinese property industry blurred its debt restructuring appearance.

China’s real estate market is once a key growth driving force for the second largest economy in the world, despite the government’s attempts to revive the weak consumer demand.

Developers resist the negotiations between companies and creditors by resisting heavy losses in the investments of bond holders, which worsen the cash flow.

Evergrande shares, which was once China’s best developer in Hong Kong in 2009, have been removed from the process since January 29, 2024, the day of the Hong Kong Supreme Court.

The liquidation order arrived after not being able to provide a suitable restructuring plan for a $ 23 billion of open sea debt.

The company seems to be elected from Hong Kong Bourse as a result of the fact that the stock market cannot fulfill the rules of continuing trade within 18 months after the start of trade.

Once upon a time, the use of capital letters exceeding $ 400 billion HK fell to $ 2.2 billion HK when the stock trade was stopped.

The listing of what is one of China’s prestige companies would contribute to the glooms that would stand on other developers who avoid entering liquidation cases by guaranteeing the support of the creditors.

Evergrande mainland is not listed on Chinese stock exchanges.

Financial consultants, China’s new home prices in June in June, the fastest speed in the fastest speed, even the first -round debt renewals, even developers weighed new negotiations and those who do not fall into the debt of such a movement to cut the debt.

“There is no light at the end of the tunnel, dedi Glen Ho, the leader of the national return and restructuring in Deloitte, referred to the real estate market.

“Companies want to delay their restructuring dates and use time to exchange more breath rooms, but they cannot create new funds from anything.”

According to the investment platform FSMONE Hong Kong, more than $ 140 billion or 70%of Chinese real estate dollar bonds have been default since 2021, and the majority of them are still in various stages of restructuring.

Anz analysts, in a report made in June, it is expected to create a long shadow of debt restructuring efforts in the medium term, and the construction of property in China will decrease by 30% due to structural changes in demand.

In 2023, the special developer Country Garden, which defailed the $ 14 billion -dollar open marine debt, is still trying to get the approval of the lenders’ debt restructuring proposal before the next liquidation hearing on August 11th.

Other developers, including KWG and Agile, have not yet announced detailed reconstruction proposals after starting the process in 2023 and 2024, respectively.

Logan and Powerlong said the bond holders cut off their bids more than once, but they have not yet received approval from their creditors.

People refused to be defined because they did not have the authority to speak to the media.

Evergrande’s liquidation officers refrained from commenting Country Garden and Hkex. KWG, Agile, Logan and Powerlong did not respond to comments.

Consultants expect some developers, especially the developers they have, to renew their improvements in home sales except for the best cities of China, without the existence of financing channels.

‘Continuous Deleming’

China’s property sector formed about one -quarter of the country’s economic activity before the collapse.

However, despite the authorities’ attempts to stabilize the market, the real estate investment in China decreased by 11.2% in the first half of this year compared to the previous year, while property sales fell 3.5% according to the floor area and new constructions fell 20%.

This year, Shimao and State-backed China-Ocoan, according to regulatory applications, were among the end that sets a date for the implementation of years of restructuring with creditors.

Earlier this year, Sunac became the first developer to propose a second restructuring to change all restructured notes to compulsory convertible bonds and received sufficient creditor approval.

Zhongliang also successfully expanded the maturity of all restructured bonds for two years.

However, Kaisa’s already approved restructuring plan by creditors and courts, the plan contained new debt, said China has not yet gained green light from the best economic planner.

Kaisa and NDRC did not respond to the request for comments.

“There is no single play book, each restructuring plan should be adapted to a company’s unique capital and creditor structure.” He said.

“However, for specially owned developers, the open tendency is a need to be continuously examined, because a single restructuring round is often insufficient to keep them alive.”

This article was created from an automatic news agency feeding without changing the text.